HopFed Bancorp, Inc. Reports Fourth Quarter Results

  HopFed Bancorp, Inc. Reports Fourth Quarter Results

Business Wire

HOPKINSVILLE, Ky. -- January 30, 2014

HopFed Bancorp, Inc. (NASDAQ: HFBC) (the “Company”), the holding company for
Heritage Bank USA, Inc. (the “Bank”), today reported results for the three and
twelve month periods ended December 31, 2013. For the three month period ended
December 31, 2013, the Company’s net income available to common shareholders
was $1.1 million, or $0.14 per share, basic and diluted, compared to net
income available to common shareholders of $648,000, or $0.09 per share basic
and diluted, for the three month period ended December 31, 2012. For the
twelve month period ended December 31, 2013, the Company’s net income
available to common shareholders was $3.8 million, or $0.50 per share, basic
and diluted, compared to a net income attributable to common shareholders of
$2.8 million, or $0.38 per share basic and diluted, for the twelve month
period ended December 31, 2012.

Commenting on the fourth quarter results, John E. Peck, President and Chief
Executive Officer, said, “The Company’s net interest income for the three
month period ended December 31, 2013, increased by $87,000 as compared to the
three month period ended September 30, 2013. The linked quarter improvement is
the result of a decline of $119,000 in total interest expense. In the three
month period ended December 31, 2013, total interest expense declined by
approximately $792,000 as compared to the same period last year.”

Mr. Peck continued, “The Company’s non-interest expenses for the twelve month
period ending December 31, 2013, increased by less than 1.00% as compared to
the twelve month period ended December 31, 2012. For the three month period
ended December 31, 2013, non-interest expenses were $7.3 million, an increase
of $324,000, as compared to the three month period ended December 31, 2012.
The increase in non-interest expense for the three month period ended December
31, 2013, as compared to the three month period ended December 31, 2012, was
largely the result of $100,000 in legal expenses associated with the
termination of a merger agreement, a $183,000 increase in expenses incurred on
other real estate owned and a $168,000 increase in losses incurred on the sale
of other real estate owned.”

Mr. Peck concluded, “Net loans grew by $11.6 million in the fourth quarter of
2013, much of that growth occurring very late in the quarter. We continue to
aggressively seek quality loan growth and are currently looking to establish
at least one loan production office in the Nashville, Tennessee market.”

Financial Highlights

  *At December 31, 2013, the Company’s tangible book value was $12.83 per
    share and tangible commonequity ratio was 9.82%. The Bank’s Tier 1
    Capital and Total Risk Based Capital Ratios at December 31, 2013, were
    10.76% and 17.81%, respectively. The Company’s Tier 1 Capital and Total
    Risk Based Capital Ratios were 11.23% and 18.61%, respectively.
  *The Company purchased 26,364 shares of its common stock in the quarter at
    a weighted average price of $11.15 per share. The Company has purchased a
    total of 76,468 shares since September 16, 2013.
  *At December 31, 2013, the Company’s allowance for loan loss totaled $8.7
    million, or 1.57% of total loans and 86.25% of non-accrual loans. In the
    twelve month period ended December 31, 2013, the Company’s net charge offs
    totaled $3.6 million, or an annualized rate of 0.66% of average loans.
  *For the three month period ended December 31, 2013, the Company’s net
    interest margin was 3.10%, as compared to 3.04% for the three month period
    ended September 30, 2013, and 3.01% for the three month period ended
    December 31, 2012.

Asset Quality

At December 31, 2013, the Company’s level of non-accrual loans totaled $10.1
million, as compared to $7.7 million at December 31, 2012, and $12.1 million
at September 30, 2013. A summary of non-accrual loans at December 31, 2013,
and December 31, 2012, is as follows:

                                                   
                                 December 31, 2013       December 31, 2012
                                 (Dollars in Thousands)
                                                         
One-to-four family mortgages     946                     2,243
Home equity line of credit       1                       66
Junior lien                      2                       4
Multi-family                     ---                     38
Construction                     174                     ---
Land                             1,218                   2,768
Non-residential real estate      6,546                   1,134
Farmland                         703                     648
Consumer loans                   13                      145
Commercial loans                 463                     617
Total non-accrual loans          10,066                  7,663
                                                         

A summary of the level of classified loans at December 31, 2013, is as
follows:

                                                                                       
                                                                                      Specific       Allowance
                                              Impaired Loans                          Allowance      for
December 31,                      Special                                         for            Performing
2013
                    Pass          Mention     Substandard     Doubtful    Total       Impairment     Loans
                                              (Dollars in Thousands)
One-to-four
family              $ 149,351     814         5,087           ---         155,252     597            1,451
mortgages
Home equity           33,462      ---         641             ---         34,103      ---            218
line of credit
Junior liens          3,126       43          79              ---         3,248       ---            39
Multi-family          29,736      ---         ---             ---         29,736      ---            466
Construction          10,443      ---         175             ---         10,618      ---            88
Land                  19,899      52          14,730          ---         34,681      771            534
Non-residential       143,044     515         14,133          ---         157,692     465            2,254
real estate
Farmland              46,042      480         5,346           ---         51,868      ---            510
Consumer loans        10,711      ---         440             ---         11,151      96             445
Commercial           61,502      526         2,013           ---         64,041      ---            748
loans
                                                                                                     
Total               $ 507,316     2,430       42,644          ---         552,390     1,929          6,753
                                                                                                     

At December 31, 2013, non-accrual loans plus other real estate owned totaled
$11.7 million, or 1.21% of assets, as compared to $13.6 million, or 1.45% of
total assets, at September 30, 2013 and $9.2 million, or 0.95% of total
assets, at December 31, 2012. A summary of the activity in other real estate
owned for the twelve month period ended December 31, 2013, is as follows:

                 
                    Activity During 2013
                    Balance                              Reduction   Gain     Balance
                                                                             (Loss)
                    12/31/12   Foreclosures   Proceeds   in Values   on       12/31/13
                                                                             Sale
                    (Dollars in Thousands)
One-to-four
family              $258         1,052            (938   )     (26    )      4          350
Mortgages
Multi-family        ---          ---              ---          ---           ---        ---
Construction        130          ---              (110   )     (110   )      90         ---
Land                1,112        80               ---          (68    )      ---        1,124
Non-residential     44           240              (60    )     (11    )      (13  )     200
real estate
Consumer assets     4            7                (5     )     (4     )      (2   )     ---
                                                                                        
Total               $1,548       1,379            (1,113 )     (219   )      79        1,674
                                                                                        

At December 31, 2013, the Company’s level of loans classified as substandard
was $42.6 million as compared to $66.6million at December 31, 2012. At
December 31, 2013, the Company’s classified loan to risk based capital ratio
was 37.1%. The Company’s specific reserve for impaired loans was $1.9 million
at December 31, 2013, and $3.8 million at December 31, 2012, respectively.

At December 31, 2013, the Company has no loans classified as performing
Troubled Debt Restructurings (“TDRs”) as compared to $11.0million at December
31, 2012. A summary of the activity in loans classified as TDRs for the twelve
month period ended December 31, 2013, is as follows:

                                                                              
                                                                           Removed
                                                           Removed due     from
                                                           to
                    Balance      New       Loss or         Payment or      (Taken to)      Balance
                    at                                                                     at
                    12/31/12     TDR       Foreclosure     Performance     Non-accrual     12/31/13
                    (Dollars in Thousands)
One-to-four
family              $1,888       242       ---             (1,863   )      (267     )      ---
mortgages
Home equity         ---          ---       ---             ---             ---             ---
line of credit
Junior Lien         96           ---       ---             (10      )      (86      )      ---
Multi-family        234          ---       ---             (234     )      ---             ---
Construction        4,112        ---       ---             ---             (4,112   )      ---
Land                656          2,649     (393     )      (656     )      (2,256   )      ---
Non-residential     3,173        266       (864     )                      (2,575   )      ---
real estate
Farmland            865          ---       ---             (865     )      ---             ---
Consumer loans      5            ---       ---             (5       )      ---             ---
Commercial          9            222       ---            (231     )      ---            ---
loans
                                                                                           
Total               $11,038      3,379     (1,257   )      (3,864   )      (9,296   )      ---
performing TDR
                                                                                           

A summary of TDRs and non-performing TDRs at December 31, 2013, and December
31, 2012, is stated below:

                                                
                               December 31, 2013   December 31, 2012
                               (Dollars in Thousands)
One-to-four family mortgages   ---                 1,888
Home equity line of credit     ---                 ---
Junior lien                    ---                 196
Multi-family                   ---                 234
Construction                   ---                 4,112
Land                           ---                 3,424
Non-residential real estate    ---                 3,173
Farmland                       ---                 909
Consumer loans                 ---                 5
Commercial loans               ---                 128
Total TDR                      ---                 14,069
Less:
TDR in non-accrual status
One-to-four family mortgages   ---                 ---
Home equity line of credit     ---                 ---
Junior lien                    ---                 (100)
Multi-family                   ---                 ---
Construction                   ---                 ---
Land                           ---                 (2,768)
Non-residential real estate    ---                 (44)
Consumer loans                 ---                 ---
Commercial loans               ---                 (119)
Total performing TDR           ---                 $11,038
                                                   

Net Interest Income

For the three month period ended December 31, 2013, the Company’s net interest
income was $6.4 million, compared to$6.5million for the three month period
ended December 31, 2012, and $6.3million for the three month period ended
September 30, 2013. For the three month period ended September 30, 2013, the
Company’s net interest margin was 3.10%, as compared to 3.01% for the three
month period ended December 31, 2012, and 3.04% for the three month period
ended September 30, 2013.

For the twelve month period ended December 31, 2013, the Company’s net
interest income was $25.3 million, as compared to $26.0 million for the twelve
month period ended December 31, 2012. For the twelve month period ended
December 31, 2013, the Company’s net interest margin was 3.01%, as compared to
2.86% for the twelve month period ended December 31, 2012.

The increase in the Company’s net interest income and net interest margin are
largely the result of significant balances of time deposits that matured in
the second and third quarters of 2013. The Company does not anticipate that it
can make material reductions in its deposit pricing structure for the next few
quarters as the weighted average cost of upcoming maturities are generally
below 1.00%.

Non-interest Income

Non-interest income for the three month period ended December 31, 2013, was
$2.3 million, as compared to $2.2 million for the three month period ended
December 31, 2012, and $1.8 million for the three month period ended September
30, 2013. Non-interest income for the twelve month periods ended December 31,
2013, and December 31, 2012, was $9.4 million and $9.6 million, respectively.

The increase in non-interest income for the three month period ended December
31, 2013, as compared to the three month periods ended December 31, 2012, and
September 30, 2013, was primarily the result of a $412,000 gain on the sale of
the Company’s insurance assets of Fall and Fall Insurance.

For the three month period ended December 31, 2013, the Company’s income on
the origination of mortgage loans was $75,000, a decline from the $272,000 of
income earned during the three month period ended December 31, 2012, and
$147,000 of income for the three month period ended September 30, 2013. For
the twelve month period ended December 31, 2013, mortgage origination revenue
was $634,000, as compared to $956,000 for the twelve month period ended
December 31, 2012. The decline in mortgage origination income was largely the
result of higher long term interest rates, reducing the secondary market
refinancing activity.

The Company recognized net gains on the sale of securities of $44,000,
$53,000, and $201,000 for the three month periods ended December 31, 2013,
December 31, 2012, and September 30, 2013, respectively. The Company
recognized net gains on the sales of securities of $1.7 million, for the
twelve month periods ended December 31, 2013, and December 31, 2012,
respectively.

The Company earned $1.25 million and $1.1 million in commission from our
financial services production during the twelve month periods ended December
31, 2013, and December 31, 2012, respectively. The Company’s wealth management
employees report increased interest in non-FDIC insured products as interest
rates remain low and the United States equity markets continue to improve.

Non-interest Expense

Non-interest expenses were $7.1 million, $6.9 million and $7.0 million for the
three month periods ended December 31, 2013, December 31, 2012, and
September30,2013, respectively. For the twelve months ended December 31,
2013, and December 31, 2012, non-interest expenses were $28.5 million and
$28.4 million, respectively. The table below identifies changes of
non-interest expenses of more than 5% for the periods December 31, 2013, as
compared to December 31, 2012:

                                                    
                                      Dollar             Percent
                                      Change             Change
                                      (In thousands)
                                                         
Salaries and benefits                 $754               5.39%
Data processing                       $201               8.06%
State bank tax                        ($66)              -10.20%
Intangible amortization               ($65)              -28.63%
Professional services                 $168               10.47%
Deposit insurance and examination     ($812)             -52.76%
Advertising expense                   ($121)             -8.92%
Supplies expense                      $140               39.44%
Loss on disposal of equipment         ($1)               -7.69%
Gain (loss) on real estate owned      ($126)             -47.37%
Real estate owned expenses            $279               226.83%
Other operating expenses              ($103)             -5.91%
                                                         

On a linked quarter basis, the Company’s non-interest expenses increased by
$272,000. The most significant increases in operating expenses related to
losses on real estate owned and expenses related to those assets for a
combined increase of $339,000. On a linked quarter basis, salaries and
benefits expense declined by $299,000, and professional services expenses
declined by $155,000, respectively. Income tax expense was negative for the
quarter due to end of year tax adjustments related to investment related tax
credits.

Balance Sheet

At December 31, 2013, consolidated assets were $973.6 million, an increase of
$5.9 million as compared to December31,2012, and an increase of $38.1
million as compared to September 30, 2013. Balance sheet growth was largely
concentrated in a $36.7 million increase in now accounts and $9.3 million
increase in customer repurchase accounts. The increase in these balances was
largely the result of customer based agricultural and small business activity
occurring in the last month of the year and are considered temporary increases
to the balance sheet. This temporary activity necessitated an increase in cash
balances, as the Company held $55.9 million in cash at December 31, 2013, as
compared to $37.2 million at December 31, 2012.

For the twelve month period ended December 31, 2013, gross loans increased by
approximately $16.7 million, to $552.3 million as compared to $535.6 million
at December 31, 2012. Loan growth included more than $10.9 million in loan
growth during the three month period ended December 31, 2013.

The Company

Prior to June 5, 2013, HopFed Bancorp, Inc. was a federally chartered savings
and loan holding company with Heritage Bank as its wholly owned thrift
subsidiary. On June 5, 2013, Heritage Bank’s legal name was changed to
Heritage Bank USA, Inc. and its charter was converted to a Kentucky state
chartered commercial bank with the Kentucky Department of Financial
Institutions and the Federal Deposit Insurance Corporation as its regulators.
Also on June 5, 2013, HopFed Bancorp, Inc. became a non-member federally
chartered commercial bank holding company regulated by the Federal Reserve
Board. HopFed Bancorp, Inc. is the holding company for Heritage Bank USA, Inc.
headquartered in Hopkinsville, Kentucky. TheBank haseighteen offices in
western Kentucky and middle Tennessee. The Company has two additional
operating divisions including Heritage Wealth Management of Murray,Kentucky,
Hopkinsville, Kentucky, and Pleasant View,Tennessee, which offers a broad
line of financial services. Heritage Mortgage Services of Clarksville,
Tennessee, offers long term fixed rate 1- 4 family mortgages loans that are
originated for the secondary market in all communities in the Company’s
general market area. The Bank offers a broad line of banking and
financialproducts and services with the personalized focus of a community
banking organization. More information about HopFed Bancorpand Heritage Bank
USA, Inc. may be found on its website www.bankwithheritage.com.

Forward-Looking Information

Information contained in this press release, other than historical
information, may be considered forward-looking in nature andis subject to
various risk, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, orshould the underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated orexpected. Among the key factors that may have a direct bearing on
the Company’s operating results, performance or financial condition are
competition and the demand for the Company’s products and services, and other
factors as set forth infilings with the Securities and Exchange Commission.
The Company undertakes no duty to update any forward-looking statement to
conform the statement to actual results or changes in the Company’s
expectations. Certain tabular presentations may not reconcile because of
rounding.

                                                             
HOPFED BANCORP, INC.

Consolidated Balance Sheets

(Dollars in thousands)
                                                                  
Assets                                      December 31, 2013     December 31,
                                                                  2012
                                            (unaudited)
                                                                  
Cash and due from banks                     $37,229               31,563
Interest-earning deposits                   18,619                5,613
Cash and cash equivalents                   55,848                37,176
Federal Home Loan Bank stock, at cost       4,428                 4,428
Securities available for sale               318,910               356,345
Loans receivable, net of allowance for
loan losses of $8,682 at December 31,       543,632               524,985
2013, and $10,648 at December 31, 2012
Accrued interest receivable                 5,233                 5,398
Real estate and other assets owned          1,674                 1,548
Bank owned life insurance                   9,677                 9,323
Premises and equipment, net                 22,526                22,557
Deferred tax assets                         4,610                 ---
Intangible asset                            130                   292
Other assets                                6,981                 5,637
Total assets                                $973,649              967,689
                                                                  
                                                                  
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest-bearing accounts               $105,252              94,083
Interest-bearing accounts
NOW accounts                                183,643               147,047
Savings and money market accounts           92,106                81,643
Other time deposits                         381,996               437,092
Total deposits                              762,997               759,865
                                                                  
Advances from Federal Home Loan Bank        46,780                43,741
Repurchase agreements                       52,759                43,508
Subordinated debentures                     10,310                10,310
Advances from borrowers for taxes and       522                   396
insurance
Dividends payable                           325                   180
Deferred tax liability                      ---                   568
Accrued expenses and other liabilities      4,239                 4,122
Total liabilities                           877,932               862,690
                                                                  

  This information is preliminary and based on company data available at the
                          time of the presentation.

                                                             
HOPFED BANCORP, INC.

Consolidated Balance Sheets, Continued

(Dollars in thousands)
                                                                  
                                                 December 31,     December 31,
                                                 2013             2012
                                                 (unaudited)
                                                                  
Stockholders' equity
Preferred stock, par value $0.01 per share;
authorized - 500,000 shares; 18,400 shares       ---              ---
issued and no shares outstanding at December
31, 2013, and December 31, 2012.
Common stock, par value $.01 per share;
authorized 15,000,000 shares; 7,927,287
issued and 7,447,903 outstanding at December     79               79
31, 2013, and 7,905,728 issued and 7,502,812
outstanding at December 31, 2012
Common stock warrant                             ---              556
Additional paid-in-capital                       58,302           76,288
Retained earnings-substantially restricted       44,694           41,829
Treasury stock- preferred (at cost, none at
December 31, 2013, and 18,400 shares at          ---              (18,400)
December 31, 2012)
Treasury stock- common (at cost, 479,384
shares at December 31, 2013, and 402,916         (5,929)          (5,076)
shares at December 31, 2012)
Accumulated other comprehensive income, net      (1,429)          9,723
of taxes
                                                                  
Total stockholders' equity                       95,717           104,999
                                                                  
Total liabilities and stockholders' equity       $973,649         967,689
                                                                  

  This information is preliminary and based on company data available at the
                          time of the presentation.

                                                                
HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income

(Dollars in thousands)

Unaudited
                                                                       
                                For the Three Month   For the Twelve Month
                                Periods               Periods
                                Ended December 31,    Ended December 31,
                                                     
                                2013        2012         2013          2012
Interest and dividend
income:
Loans receivable                6,578       7,211        26,741        29,828
Investment in securities,       1,636       1,899        6,873         8,722
taxable
Nontaxable securities           543         571          2,219         2,266
available for sale
Interest-earning deposits       6           4            24            24
Total interest and dividend     8,763       9,685        35,857        40,840
income
                                                                       
Interest expense:
Deposits                        1,510       2,292        7,114         10,571
Advances from Federal Home      445         454          1,780         2,609
Loan Bank
Repurchase agreements           237         242          954           963
Subordinated debentures         185         181          733           734
Total interest expense          2,377       3,169        10,581        14,877
                                                                       
Net interest income             6,386       6,516        25,276        25,963
Provision for loan losses       396         500          1,604         2,275
                                                                       
Net interest income after       5,990       6,016        23,672        23,688
provision for loan losses
                                                                       
Non-interest income:
Service charges                 931         966          3,670         3,840
Merchant card income            256         222          983           842
Mortgage origination            75          272          634           956
revenue
Gain on sale of securities      44          53           1,661         1,671
Other than temporary                        ---          (400)         ---
impairment
Income from bank owned life     103         161          353           399
insurance
Financial services              292         293          1,250         1,071
commission
Gain on sale of assets          412         ---          412           ---
Other operating income          179         219          809           860
Total non-interest income       2,292       2,186        9,372         9,639
                                                                       

  This information is preliminary and based on company data available at the
                          time of the presentation.

                                                           


HOPFED BANCORP, INC.

Consolidated Condensed Statements of Income, Continued

(Dollars in thousands, except share and per share data)

(Unaudited)

                                                                  For the
                        For the Three Month Periods               Twelve Month
                                                                  Periods
                        Ended December 31,                        Ended
                                                                  December 31,
                                               
                        2013          2012        2013            2012
Non-interest
expenses:
Salaries and            3,436         3,464       14,733          13,979
benefits
Occupancy               870           917         3,475           3,531
Data processing         747           631         2,695           2,494
State bank tax          149           162         581             647
Intangible              32            49          162             227
amortization
Professional            338           285         1,773           1,605
services
Deposit insurance       179           267         727             1,539
and examination
Advertising expense     303           405         1,236           1,357
Postage and             140           118         567             562
communications
Supplies expense        107           75          495             355
Loss on disposal of     12            ---         12              13
equipment
Gain (loss) on real     147           (21)        140             266
estate owned
Real estate owned       216           33          402             123
expenses
Other operating         580           547         1,640           1,743
expenses
Total non-interest      7,256         6,932       28,638          28,441
expense
                                                                  
Income before           1,026         1,270       4,406           4,886
income tax expense
Income tax expense      (50)          165         644             817
                                                                  
Net income              1,076         1,105       3,762           4,069
Less:
Dividend on             ---           318         ---             1,007
preferred shares
Accretion dividend      ---           139         ---             222
on preferred shares
                                                                  
Net income
available to common     $1,076        $648        $3,762          $2,840
shareholders
Net income
available to common
shareholders
Per share, basic        $0.14         $0.09       $0.50           $0.38
Per share, diluted      $0.14         $0.09       $0.50           $0.38
Dividend per share      $0.04         $0.02       $0.12           $0.08
                                                                  
Weighted average
shares outstanding      7,430,970     7,487,726   7,463,003       7,486,445
- basic
Weighted average
shares outstanding      7,430,970     7,487,726   7,463,003       7,486,445
- diluted
                                                                  

  This information is preliminary and based on company data available at the
                          time of the presentation.

                                                          
HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands)
                                                                 
                                    For the Three
                                    Months Ended                 
                                                                 Change from
                                    12/31/2013     9/30/2013     Prior Quarter
                                                                 
Interest and dividend income:
Loans receivable                    6,578          6,605         (27)
Investment in securities,           1,636          1,641         (5)
taxable
Nontaxable securities available     543            544           (1)
for sale
Interest-earning deposits           6              5             1
Total interest and dividend         8,763          8,795         (32)
income
                                                                 
Interest expense:
Deposits                            1,510          1,622         (112)
Advances from Federal Home Loan     445            445           ---
Bank
Repurchase agreements               237            245           (8)
Subordinated debentures             185            184           1
Total interest expense              2,377          2,496         (119)
                                                                 
Net interest income                 6,386          6,299         87
Provision for loan losses           396            426           (30)
                                                                 
Net interest income after           5,990          5,873         117
provision for loan losses
                                                                 
Non-interest income:
Service charges                     931            949           (18)
Merchant card income                256            245           11
Mortgage orgination revenue         75             147           (72)
Gain on sale of securities          44             201           (157)
Other than temporary impairment     ---            (400)         400
Income from bank owned life         103            88            15
insurance
Financial services commission       292            314           (22)
Other operating income              591            225           366
                                                                 
Total non-interest income           2,292          1,769         523
                                                                 

  This information is preliminary and based on company data available at the
                           time of the presentation

                                                          
                                                                 
HOPFED BANCORP, INC.

Selected Financial Data

(Dollars in thousands, except share and per share data)

                                    For the Three
                                    Months Ended                 
                                                                 Change from
                                    12/31/2013     9/30/2013     Prior Quarter
                                                                 
Non-interest expenses:
Salaries and benefits               $3,436         3,735         (299)
Occupancy expense                   870            878           (8)
Data processing expense             747            652           95
State deposit tax                   149            143           6
Intangible amortization expense     32             33            (1)
Professional services expense       338            493           (155)
Deposit insurance and               179            137           42
examination expense
Advertising expense                 303            292           11
Postage and communications          140            149           (9)
expense
Supplies expense                    107            159           (52)
Loss on sale of other assets        12             ---           12
(Gain) Loss on sale of real         147            (54)          201
estate owned
Real estate owned expenses          216            78            138
Other operating expenses            580            289           291
                                                                 
Total non-interest expense          7,256          6,984         272
                                                                 
Income before income tax            1,026          658           368
expense
Income tax expense                  (50)           122           (172)
                                                                 
Net income                          1,076          536           540
Net income (loss) available
(attributable) to common
stockholders
Per share, basic                    $0.14          $0.07         0.07
Per share, diluted                  $0.14          $0.07         0.07
Dividend per share                  $0.04          $0.04
                                                                 

  This information is preliminary and based on company data available at the
                          time of the presentation.

                             HOPFED BANCORP, INC.
                           Selected Financial Data

The table below adjusts tax-free investment income for the twelve month
periods ended December 31, 2013, and December 31,2012, by $1,073,000 and
$716,000, respectively; for a tax equivalent rate using a cost of funds rate
of 1.40% forthe twelve month period ended December 31, 2013, and 1.80% for
the twelve month period ended December 31, 2012. The table adjusts tax-free
loan income by $9,000 for twelve month periods ended December 31, 2013, and
December 31, 2012, respectively, for a tax equivalent rate using the same cost
of funds rate:

                                                                                      
                    Average          Income &         Average          Average          Income &         Average
                    Balance          Expense          Rates            Balance          Expense          Rates
                    12/31/2013       12/31/2013       12/31/2013       12/31/2012       12/31/2012       12/31/2012
                                                                                                                    
Loans               $528,074         $26,750          5.07%            $542,292         $29,837          5.50%
Investments         269,304          6,873            2.55%            313,347          8,722            2.78%
AFS taxable
Investments         70,178           3,292            4.69%            68,428           2,982            4.36%
AFS tax free
Federal funds       9,060            24               0.26%            9,850            24               0.24%
                                                                                                                    
Total
interest            876,616          36,939           4.21%            933,917          41,565           4.45%
earning
assets
                                                                                                                    
Other assets        80,609                                             85,560
                                                                                                                    
Total assets        $957,225                                           $1,019,477
                                                                                                                    
                                                                                                                    
                                                                                                                    
Retail time         $362,651         5,046            1.39%            $435,454         8,316            1.91%
deposits
Brokered            44,349           673              1.52%            51,193           946              1.85%
deposits
Now accounts        164,669          1,243            0.75%            145,173          1,180            0.81%
MMDA and
savings             86,226           152              0.18%            74,574           129              0.17%
accounts
FHLB                44,898           1,780            3.96%            56,990           2,609            4.58%
borrowings
Repurchase          41,615           954              2.29%            40,915           963              2.35%
agreements
Subordinated        10,310           733              7.11%            10,310           734              7.12%
debentures
                                                                                                                    
Total
interest            754,718          10,581           1.40%            814,609          14,877           1.83%
bearing
liabilities
                                                                                                                    
Non-interest
bearing             92,428                                             84,304
deposits
Other
non-interest        5,332                                              6,559
bearing
liabilities
                                                                                                                    
Stockholders'       101,747                                            114,005
equity
                                                                                                                    
Total
liabilities
and                 $954,225                                           $1,019,477
stockholders'
equity
                                                                                                                    
Net change in
interest
earning
assets and                           $26,358                                            $26,688
interest
bearing
liabilities
Interest rate                                         2.81%                                              2.62%
spread
Net yield on
interest                             3.01%                                              2.86%
earning
assets
                                                                                                                    

  This information is preliminary and based on company data available at the
                          time of the presentation.

                             HOPFED BANCORP, INC.
                           Selected Financial Data

The table below adjusts tax-free investment income for the three month periods
ended December 31, 2013, and December 31,2012, by $264,000 and $274,000,
respectively; for a tax equivalent rate using a cost of funds rate of 1.35%
for the three month period ended September 30, 2013, and 2.00% for the three
month period ended September 30, 2012. The table adjusts tax-free loan income
by $2,000 for three month periods ended December 31, 2013, and $1 for the
three month period ended December 31, 2012, respectively, for a tax equivalent
rate using the same cost of funds rate:

                                                                                   
                  Average        Income &       Average          Average          Income &         Average
                  Balance        Expense        Rates            Balance          Expense          Rates
                  12/31/2013     12/31/2013     12/31/2013       12/31/2012       12/31/2012       12/31/2012
                                                                                                              
Loans             $531,102       $6,580         4.96%            $532,847         $7,212           5.41%
Investments       249,629        1,636          2.62%            285,565          1,899            2.66%
AFS taxable
Investments       66,942         807            4.82%            70,554           845              4.79%
AFS tax free
Federal funds     9,682          6              0.25%            14,003           4                0.11%
                                                                                                              
Total
interest          857,355        9,029          4.21%            902,969          9,960            4.41%
earning
assets
                                                                                                              
Other assets      86,175                                         79,807
                                                                                                              
Total assets      $943,530                                       $982,776
                                                                                                              
                                                                                                              
                                                                                                              
Retail time       $338,123       1,028          1.22%            $408,353         1,777            1.74%
deposits
Brokered          45,379         148            1.30%            47,127           193              1.64%
deposits
Now accounts      168,425        291            0.69%            145,644          290              0.80%
MMDA and
savings           90,382         43             0.19%            76,335           32               0.17%
accounts
FHLB              48,743         445            3.65%            44,044           454              4.12%
borrowings
Repurchase        41,788         237            2.27%            40,758           242              2.37%
agreements
Subordinated      10,310         185            7.18%            10,310           181              7.02%
debentures
                                                                                                              
Total
interest          743,150        2,377          1.28%            772,571          3,169            1.64%
bearing
liabilities
                                                                                                              
Non-interest
bearing           97,602                                         88,783
deposits
Other
non-interest      5,491                                          6,753
bearing
liabilities
                                                                                                              
Stockholders'     97,287                                         114,669
equity
                                                                                                              
Total
liabilities
and               $943,530                                       $982,776
stockholders'
equity
                                                                                                              
Net change in
interest
earning
assets and                       $6,652                                           $6,791
interest
bearing
liabilities
Interest rate                                   2.93%                                              2.77%
spread
Net yield on
interest                         3.10%                                            3.01%
earning
assets
                                                                                                              

  This information is preliminary and based on company data available at the
                          time of the presentation.

Contact:

HopFed Bancorp, Inc.
John E. Peck, 270-885-1171
President and CEO
 
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